For Joe Kamdani, making a billion dollars from nothing was essentially about filling a need and getting started in a small business. He is the Founder & Mentor of pt. Datascrip, an over four-decade-old giant marketing and distribution company in Indonesia. Some of us may recognize the company as a distributor of popular electronic brands including Canon, Panasonic, and Huawei.
Joe, 79, the eldest son of 11 children from an Indonesian Chinese family, dropped out of college just after a year. He eventually began work as a salesman, making a modest income from commissions selling carbon paper, stationery, and office essentials.
Joe did so for a decade, learning the art of selling from other salesmen as well as why was networking and winning customers’ trust so important in business. The trust he earned eventually helped Joe start up with a small store where his clients actually put their products up even though he had no money to pay them.
He describes his journey into three level of life. The first level is “Eat to Live”, where he refers to the time of his humble beginnings. “I would take up any job, as long as I can eat to live,” Joe explained.
Thereafter began the second level, which was “Live to Eat”. At this level, he seriously started thinking about how to develop and run a business of his own.
He started writing down the management guidelines, to be used in the management operations. Until one day he asked himself; “What am I living for? Why am I here on this earth? What am I supposed to be doing with my life? These deep questions kept blazing in my mind,” said Joe.
Upon reflection, he said he got the answer on the third level, “Live for Life”. Since then, his life’s journey has always been connected with helping others.
Now, pt. Datascip is run by his son, Irwan Kamdani, while Joe devotes more time to his love for water sports and other interests. But, like any other business man in the world, Joe has been facing a challenge to find the best way to transfer wealth to his children.
Marketeers’ Saviq Bachdar was invited for a tête-à-tête with Joe in his office over lunch. Here are some excerpts from the conversation:
Tell us more about your career?
In the past, I had no hope at all. I spent my life just surviving, living to eat. I was like the hawkers these days, if you asked them what is their vision, they would just not know.
Actually, I could not choose what I wanted to do. I simply had no choices in life. At a very young age, I began working, where I stayed for two years and then moved to another job. I had never been satisfied with those jobs. And then, I decided to become a salesman.
I start selling office stationery like pen, paper, promotional gift items, printer, cartridge, copier etc. I was selling to local businesses, from small to big companies.
I was not paid a salary at that time, but just a commission based on the revenue I delivered. Just by selling items, what could I create? I could not make much money, but I made friends. That’s what we call networking. It is very important in sales, whether you are selling products, services or yourself. It’s the most basic form of advertising and the cheapest.
So how did PT Datascrip come into being?
One day, I was asked by PT Gajah Tunggal to operate their stationery store. I said, “OK. But allow me to sell office equipment.” Years went by and their business grew. So I ended up focusing on selling office equipment and eventually built a small store called Matahari Alka (Alat Kantor) in 1969.
I believe that there is something special in the names. Like I know Matahari (Sun) is found in all cultures throughout history. But for me, the Sun is a very manly thing in the world. It is shiny, hot, makes us sweat, and most importantly, it is what makes life on earth. I could not use Matahari as my company name because there was already the Matahari Department Store , owned by Lippo Group.
My Matahari store consistently and successfully grew and eventually became the birthplace of PT Datascrip in 1974, a humble stationery company with an expanding product line-up, from stationery to office equipment, office machines, drafting machines, office furniture, computers and printers.
Starting in 1997, Datascrip started its transformation as an office solution company. It repositioned itself as a business solutions provider. Today, Datascrip’s foray into information technology is strengthened by its existing product portfolio and 45 years of management experience.
What is your definition of wealth?
Wealth for me is health. The art of happiness is to serve all. To be truly happy, we must think not only of how we can help ourselves but how we can help others. It’s also why we feel good when we give back. That’s the definition of wealth.
In terms of money, people say I’m rich, but there are people who are hundred times richer than I am. If I’m rich, the taxes I pay will continue to rise. The more you make, the more you pay. But I do not claim myself as a rich man. I would rather say I’m a wealthy person. Being wealthy is different and better than being rich.
The main difference between being rich and being wealthy is knowledge. Wealthy people know how to make money while rich people only have money. But you know, money is not the only thing in the world that can make you happy.
How to balance a growing business with the growing and evolving family needs?
Building a business is not the same as building a family. Most businesses begin with one main financial objective, to make profits. On the other hand, a family is raised through love. If we build a business, the motivation is only for profit. Without profit, nothing will happen.
If there is a job or a deadline you need to meet, you may sacrifice your time at home, getting late from work instead of spending time with your children. I think it doesn’t matter as long as you don’t do this very often and don’t make it as a habit. I think the family would understand the situation.
What do you think is the best way to pass on wealth to children?
It’s not unusual for family-owned businesses to be passed along to family members. Although in the case of larger companies, the handover to a family member can be more complicated. But, when you own 100% shares of your company, it can be easier.
However, there is two type of assets that are up for inheritance in a family business. The first type includes the tangible assets, such as stocks, homes, or boats. Those assets can be easily inherited by all the children.
And then there are nontangible assets such as leadership. It cannot be inherited, but only cultivated by inspiring others through one’s personal characteristics and actions. Leaders make difference. Passing the baton is easy, but what needs much consideration is how the family business can successfully pull off the succession from one generation to the next.
How to encourage your children to take over a company?
I think I am lucky. My kids decided to be a part of the business with passion, not coercion. Because if you do not like the job, you can never be successful.
Irwan Kamdani, my son, is now the President Director of pt. Datascrip. After earning his Master’s degree in business administration from Fordham University, New York, the U.S., he immediately joined Datascrip so that he could learn from me.
I told him, you would be accepted in this company only if people think you are worth it. Leadership is not inherited, but it grows by itself.
My children are different from me. My father was a poor man. Meanwhile, their father is a rich man. I just graduated from high school, they graduated from the best universities in the U.S. I was the founder, but they won’t be. In fact, it’s easier to set up a company rather than take over as its leader.
If my children do not want to get involved in my business, I better have the director working for me, so he will do the best. Let him do the job, make a profit and share with me. That’s it.
Why do some wealthiest people in the world refuse to leave their fortune to their children, and decide to donate to charity?
In the U.S., charitable donations do provide a reduction in your taxes. The more you give back, the lower your tax bills will be.
But in Indonesia, we don’t still have that rule. Although I know that the government would like to create clearer standards and unify the donations, charities, or zakat into better economic tools for the welfare of society. This initiative can reduce our taxable income.
What is the best wisdom you received from your parents and that you still follow and tell your children?
Maybe I have had no words of wisdom from my parents. Because they didn’t talk too much. However, they showed me what they were doing. You know, actions speak louder than words. If you only talk, nothing happens.
But when actions take place, you are actually engaging in the desired behavior. Actions prove who someone really is while words only show what someone wants to be.
A wisdom that I always keep in mind is “always be honest” whenever and wherever. I keep getting told since a young age that honesty is important. I know people don’t care about me being honest. But it doesn’t matter.
You could say that “like everyone, I have lied from time to time”. If you’re going to be like “everyone,” what is going to make you stand out from the crowd? Once you are lying to yourself, you will lie to others. If you are honest, then you will have a good reputation in all the aspects of your life.
Why is it so hard to transfer wisdom about dealing with wealth? It is not a new issue.
Wisdom may create wealth, but wealth never creates wisdom. I can give all I have to my children. The question is ‘do they really need my wealth?’ So what I do is to encourage my children to be leaders, through my wisdom.
And one thing, I teach my children like I teach my employees. When the company was still small, people could reach me easily. But as the company got bigger, I wasn’t as approachable all the time. That’s why we need a strong corporate culture that represents the soul of the founder. The soul of me.
So we created “Catur Sila”, the values that demonstrate how we live. First, succeed above success. Second, CARE (Customer Interest, Attentive, Responsive, and Enthusiasm). Third, SMILE (Share, Motivate, Improve, Lead, Efficient), and Fourth, ‘CoCoCoCo’ (Communication, Cooperation, Coordination, Commitment).
